If we use the shortrun (specificfactors) model to model FDI movement from one nation to another, then wages in the recipient nation:
a. decline absolutely.
b. rise as a result of an increase in the MP of labor.
c. are not affected.
d. decline relatively, as capital competes with labor but not absolutely.
Answer: b. rise as a result of an increase in the MP of labor.
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If McDonald's, Wendy's, and Burger King agree with each other not to sell hamburgers for less than $3.95 apiece, all three could be found guilty of
A) an interlocking directorship under the Clayton Act. B) price fixing under the Sherman Act. C) a deceptive business practice under the Clayton Act. D) None of the above answers is correct.
At present, the Social Security System
A) takes in more revenue than it spends on benefits. B) takes in less revenue than it spends on benefits. C) equates the revenue that it receives and the amount it spends on benefits. D) has no idea of just how much revenue it taking in.
Barking dogs cannot be considered an externality because externalities must be associated with some form of market exchange
a. True b. False Indicate whether the statement is true or false
During recessions which type of spending falls?
a. consumption and investment b. investment but not consumption c. consumption but not investment d. neither consumption nor investment